North Carolina Lemon Law Refund Calculator

How the North Carolina buyback is calculated

Under the New Motor Vehicles Warranties Act.

• If the manufacturer cannot conform your vehicle to the warranty after a reasonable number of attempts, the Act says it must, at your option, replace the vehicle with a comparable new one or accept it back and refund you.
• A purchaser’s refund is the full contract price, including charges for undercoating, dealer preparation and transportation and installed options, plus the non-refundable portions of extended warranties and service contracts. It also includes collateral charges such as sales tax and license and registration fees, finance charges you incurred after you first reported the problem, and incidental and monetary consequential damages. Enter only the finance charges incurred after that first report.
• The refund is reduced by a reasonable allowance for your use. The statute sets the formula: the miles you used up to the date of the third attempt to repair the same problem, or the twentieth cumulative business day the vehicle was out of service, whichever comes first, multiplied by the purchase price (or the lessor’s actual lease price) and divided by 120,000.
• For example, on a $35,000 vehicle with 6,000 miles used up to that cutoff, the allowance is 6,000 x $35,000 / 120,000, or $1,750. Enter your odometer at that cutoff; if you leave it out, our estimate falls back to the odometer at your first repair, which comes earlier, so it understates the allowance and overstates the refund.
• If you lease, you recover all sums paid under the lease and in connection with entering it, such as any capitalized cost reduction, sales tax and license and registration fees, less the same allowance, which the statute measures on the lessor’s actual lease price. The lessor receives the lease price plus 5% less 85% of what you paid. Enter the lessor’s actual lease price in the lease section; without it our lease figure takes the allowance on the sums you paid, so it understates the allowance.
• In an action under the Act, damages are trebled upon a finding that the manufacturer unreasonably refused to comply with its duty to repair or to replace or refund. That is not automatic, but it raises what is at stake.

North Carolina lemon law: frequently asked questions

How is the allowance for use calculated in North Carolina?

The statute multiplies the miles you used up to the third repair attempt for the same problem, or the twentieth cumulative business day out of service, whichever comes first, by the purchase price (or the lessor’s actual lease price) and divides by 120,000. The miles after that cutoff are not counted. Enter your odometer at that cutoff; without it our estimate falls back to the odometer at your first repair, which comes earlier, so it understates the allowance.

What is included in a North Carolina refund?

For a purchaser: the full contract price plus the non-refundable portions of extended warranties and service contracts, all collateral charges including sales tax and license and registration fees, finance charges incurred after you first reported the problem, and incidental and monetary consequential damages. The refund is reduced by the allowance for use and is paid to the consumer, the lessor and any lienholders as their interests may appear.

Do I choose between a refund and a replacement?

Yes. The Act says the manufacturer must act at the option of the consumer: replace the vehicle with a comparable new motor vehicle, or accept it back and refund you.

Can the damages be tripled?

In an action under the Act, damages are trebled upon a finding that the manufacturer unreasonably refused to comply with its duty to repair or to replace or refund. The jury may consider as damages all the items listed for refund. This depends on that finding and is not automatic.

Who pays the attorney’s fees?

The court may award a reasonable attorney’s fee to the prevailing party, payable by the losing party, if it finds the manufacturer unreasonably failed or refused to fully resolve the matter, or that the party who brought the action knew or should have known it was frivolous and malicious.

What if I lease my vehicle?

Lessees are covered. The consumer recovers all sums previously paid under the lease and in connection with entering it, such as any capitalized cost reduction, sales tax and license and registration fees, plus incidental and monetary consequential damages, less the allowance for use, which the statute measures on the lessor’s actual lease price. The lessor gets the lease price plus 5% of it, less 85% of what you paid. The vehicle goes back to the manufacturer and the lease ends without penalty to you.